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Panama

Panama Economy Stats

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Author: jaacosta47

Panama is full of history. In 1914, Panama Canal was unveiled as a first of its kind connection between the Atlantic and Pacific regions. It eventually formed the nucleus of the country’s economy while instituting Panama in the global commercial map. After a century, the channel is undergoing massive reconstruction. It is expected to generate more traffic and enable more vessels to use the canal. The project will be terminated by 2015 after six years of rehabilitation. $3.2 billion was earmarked for the huge project.

In 2013, the country’s GDP rose by 5.57 percent. The forecast from 2014 up to 2016 is higher at over nine percent. The IMF calculated this year’s GDP to peak at 6.9 percent. The primary driving force of the economy will be direct investments. Meanwhile, there was an all-time low unemployment which is 2.9 percent both in 2013 and 2014. Investments will represent a third of the country’s GDP. This accounts for 25 percent in the rest of the region. The expansion project will naturally draw in more investments.

The recent discovery of oil reserves in the jungles of Darien jungle is also a boon for the economy. It can contain as much as 900 million barrels. This will make it possible for Panama to refrain from importing crude oil. There is an upcoming legislation to capitalize on these oil reserves as well as guarantee protection of the ecology. The 2013 inflation rate (3.45) percent may increase to some extent in 2014 but this will not be damaging to the economy. This is also expected to plunge by 1.5 percent in 2015, according to some economic institutions like Trading Economics. http://www.panamarealtor.com/newsletter/archive/106

Overview:

Panama's dollar-based economy rests primarily on a well-developed services sector that accounts for three-quarters of GDP. Services include operating the Panama Canal, logistics, banking, the Colon Free Zone, insurance, container ports, flagship registry, and tourism. Economic growth will be bolstered by the Panama Canal expansion project that began in 2007 and is scheduled to be completed by 2014 at a cost of $5.3 billion - about 25% of current GDP. The expansion project will more than double the Canal's capacity, enabling it to accommodate ships that are now too large to traverse the transoceanic crossway. The United States and China are the top users of the Canal. Panama also plans to construct a metro system in Panama City, valued at $1.2 billion and scheduled to be completed by 2014. Panama's booming transportation and logistics services sectors, along with aggressive infrastructure development projects, will likely lead the economy to continued growth in 2011. Strong economic performance has not translated into broadly shared prosperity, as Panama has the second worst income distribution in Latin America. About 30% of the population lives in poverty; however, from 2006 to 2010 poverty was reduced by 10 percentage points, while unemployment dropped from 12% to 6% of the labor force. Panama and the United States signed a Trade Promotion Agreement in June 2007, which, when implemented, will help promote the country's economic growth. Seeking removal from the Organization of Economic Development's gray-list of tax havens, Panama has also recently signed various double taxation treaties with other nations.

Definitions

  • Budget > Revenues: Revenues calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms
  • Exports: This entry provides the total US dollar amount of merchandise exports on an f.o.b. (free on board) basis. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.
  • Fiscal year: The beginning and ending months for a country's accounting period of 12 months, which often is the calendar year but which may begin in any month. All yearly references are for the calendar year (CY) unless indicated as a noncalendar fiscal year (FY).
  • GDP: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used.
  • GDP > Composition by sector > Industry: The gross domestic product (GDP) or value of all final goods produced by the industrial sector within a nation in a given year. GDP dollar estimates in the Factbook are derived from purchasing power parity (PPP) calculations. See the CIA World Factbook for more information.
  • GDP > Per capita: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP-denominated GDP values for most of the weathly industrialized countries are generally much smaller. Per capita figures expressed per 1 population.
  • GDP > Per capita > PPP: This entry shows GDP on a purchasing power parity basis divided by population as of 1 July for the same year.
  • GDP > Purchasing power parity: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP-denominated GDP values for most of the weathly industrialized countries are generally much smaller.
  • GDP > Real growth rate: GDP growth on an annual basis adjusted for inflation and expressed as a percent.
  • GDP per capita: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used. Figures expressed per capita for the same year.
  • Gross National Income: GNI, Atlas method (current US$). GNI (formerly GNP) is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and prop).
  • Inflation rate > Consumer prices: This entry furnishes the annual percent change in consumer prices compared with the previous year's consumer prices.
  • Population below poverty line: National estimates of the percentage of the population lying below the poverty line are based on surveys of sub-groups, with the results weighted by the number of people in each group. Definitions of poverty vary considerably among nations. For example, rich nations generally employ more generous standards of poverty than poor nations.
  • Public debt: This entry records the cumulatiive total of all government borrowings less repayments that are denominated in a country's home currency. Public debt should not be confused with external debt, which reflects the foreign currency liabilities of both the private and public sector and must be financed out of foreign exchange earnings.
  • Unemployment rate: This entry contains the percent of the labor force that is without jobs. Substantial underemployment might be noted.
STAT AMOUNT DATE RANK HISTORY
Budget > Revenues $9.07 billion 2013 83th out of 223
Exports $18.88 billion 2012 72nd out of 189
Fiscal year calendar year 2013
GDP $36.25 billion 2012 83th out of 177
GDP > Composition by sector > Industry 16.8% 2012 175th out of 217
GDP > Per capita $13,159.85 per capita 2010 30th out of 118
GDP > Per capita > PPP $15,400.00 2012 65th out of 188
GDP > Purchasing power parity $56.46 billion 2012 88th out of 190
GDP > Real growth rate 10.7% 2012 7th out of 191
GDP per capita $9,534.41 2012 62nd out of 177
Gross National Income $9.46 billion 2001 73th out of 158
Inflation rate > Consumer prices 5.7% 2012 67th out of 199
Population below poverty line 26% 2012 7th out of 17
Public debt 39.6% of GDP 2012 88th out of 149
Unemployment rate 4.4% 2012 95th out of 112

SOURCES: CIA World Factbooks 18 December 2003 to 28 March 2011; CIA World Factbooks 2010, 2011, 2012, 2013; All CIA World Factbooks 18 December 2003 to 18 December 2008; World Bank national accounts data, and OECD National Accounts data files.; CIA World Factbook 2010, 2011, 2012, 2013; World Bank national accounts data, and OECD National Accounts data files. Population figures from World Bank: (1) United Nations Population Division. World Population Prospects, (2) United Nations Statistical Division. Population and Vital Statistics Report (various years), (3) Census reports and other statistical publications from national statistical offices, (4) Eurostat: Demographic Statistics, (5) Secretariat of the Pacific Community: Statistics and Demography Programme, and (6) U.S. Census Bureau: International Database.; CIA World Factbooks 18 December 2003 to 28 March 2011

Citation

"Panama Economy Stats", NationMaster. Retrieved from http://www.nationmaster.com/country-info/profiles/Panama/Economy

NationMaster

Panama Economy Profiles (Subcategories)

Adjusted savings 3 International tourism 14
Aid 5 Labor force 3
Balance of payments 34 Long-term debt 4
Bank and trade-related lending 4 Market capitalization of listed companies 4
Budget 15 Merchandise 4
Changes in net 4 Merchandise imports 4
Commercial service 4 Micro 4
Commercial service imports 4 National accounts 98
Companies 39 Natural gas 8
Consumption 8 Net capital account 4
Currency 12 Net current transfers 4
Current account balance 5 Net current transfers from abroad 6
Current transfers 4 Net errors and omissions 4
Debt 71 Net financial flows 20
Economic aid 3 Net income 4
Electricity 8 Net income from abroad 6
Entrepreneurship 12 Net trade in goods 4
Exports 3 Net trade in goods and services 4
External balance on goods and services 7 Official development assistance and official aid 4
External debt 215 Oil 10
Final 11 Portfolio investment 12
Financial sector 34 Poverty 24
Foreign aid 43 Poverty and inequality 9
Foreign direct investment 9 Private investment 3
GDP 42 Private nonguaranteed debt 4
GDP growth 3 Public and publicly guaranteed debt service 6
GDP per capita 4 Public and publicly guaranteed (PPG) debt 3
GNI 12 Purchasing power parity 11
Goods 4 Reserves 6
Goods imports 4 Retail 3
Government 12 Royalty and license fees 4
Government spending 5 Savings 42
Gross capital formation 10 Service 4
Gross domestic savings 5 Service imports 4
Gross fixed capital formation 10 Services 10
Gross national expenditure 9 Spending 73
Gross savings 6 Stock of direct foreign investment 4
Gross value added at factor cost 9 Stocks traded 5
High-technology 4 Tax 71
Household final 23 Total 9
IBRD loans and IDA credits 4 Total debt service 6
Income 24 Tourism 21
Income distribution 4 Tourism expenditures 5
Income payments 4 Tourism receipts 5
Income receipts 4 Tourist arrivals by region of origin 6
Inequality 8 Trade 1274
Inflation 9 Trademark applications 3
Innovation 33 Use of IMF credit 4
Interest payments 3 Welfare 5
Panama ranked first for GDP > real growth rate amongst Christian countries in 2012.
Panama has had the highest bank liquid > reserves to bank assets ratio since 1969.
Panama ranked first for trade balance with US amongst Catholic countries in 2003.
Panama ranked first for GDP > composition by sector > services amongst Former Spanish colonies in 2012.
Panama ranked 26 places from the bottom for GDP > composition by sector > industry amongst Hot countries in 2012.
Panama ranked second for GDP > composition, by end use > exports of goods and services amongst Latin America and Caribbean in 2013.

4

Panama is full of history. In 1914, Panama Canal was unveiled as a first of its kind connection between the Atlantic and Pacific regions. It eventually formed the nucleus of the country’s economy while instituting Panama in the global commercial map. After a century, the channel is undergoing massive reconstruction. It is expected to generate more traffic and enable more vessels to use the canal. The project will be terminated by 2015 after six years of rehabilitation. $3.2 billion was earmarked for the huge project.

In 2013, the country’s GDP rose by 5.57 percent. The forecast from 2014 up to 2016 is higher at over nine percent. The IMF calculated this year’s GDP to peak at 6.9 percent. The primary driving force of the economy will be direct investments. Meanwhile, there was an all-time low unemployment which is 2.9 percent both in 2013 and 2014. Investments will represent a third of the country’s GDP. This accounts for 25 percent in the rest of the region. The expansion project will naturally draw in more investments.

The recent discovery of oil reserves in the jungles of Darien jungle is also a boon for the economy. It can contain as much as 900 million barrels. This will make it possible for Panama to refrain from importing crude oil. There is an upcoming legislation to capitalize on these oil reserves as well as guarantee protection of the ecology. The 2013 inflation rate (3.45) percent may increase to some extent in 2014 but this will not be damaging to the economy. This is also expected to plunge by 1.5 percent in 2015, according to some economic institutions like Trading Economics. http://www.panamarealtor.com/newsletter/archive/106

Posted on 25 May 2014

jaacosta47

jaacosta47

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